The Canadian Chamber of Commerce applauds a low-tax budget

The economic measures announced in today’s budget will continue to support the economic recovery and help Canadian businesses prosper and compete.

“We are pleased that this budget does not plan for any tax increases,” said Canadian Chamber of Commerce President and CEO Perrin Beatty. “The Canadian Chamber and its network have been very active in the corporate income tax debate over the last few months and our message has been heard. Canada’s low tax plan has created a healthy economic environment for business investment and we applaud the government for staying the course.”

While Canada’s economic performance has been better than expected, the global outlook remains uncertain and a number of economic risks that could impede the recovery still persist. This fragile situation clearly points to the need for responsible fiscal management.

The Canadian Chamber of Commerce has been calling on the government to bolster Canada’s competitiveness and ensure that our country remains a leader among G7 countries. The biggest challenge for the federal government now is to restrain program spending to historically low levels.

“The government has endorsed the Canadian Chamber of Commerce’s call for a plan to return to budget balance in the medium term,” Beatty added. “We are securing the fiscal flexibility that is crucial to our long-term competitiveness and it is encouraging that the government continues to focus on strengthening the economy and creating jobs. That is what businesses across Canada need now.”

The Canadian Chamber also welcomed the introduction of a onetime hiring credit for small businesses up to $1000 to offset increases in EI premiums.

“We called on the government to focus on three areas- transition from stimulus to private sector-led recovery, a credible plan to return to balanced budgets within five years, and commitment to a tax and regulatory environment that will attract investments and create jobs. The government listened and delivered,” Beatty said.

View the Canadian Chamber’s analysis of budget 2011.